With mounting costs of public transport and increasing traffic, owning a vehicle of your own has become more of a necessity than extravagance. When compared to cars, a two-wheeler is easier to maintain and consumes less fuel. If you are worried about the unexpected expenses that you will incur if you purchase a motorbike, applying for a two-wheeler loan is the best thing to do. With lot of leading banks in India offering two wheeler loans, you can not only get the vehicle of your dreams in no time but also pay back the loan without any financial stress through easy instalments.
Before applying for a two-wheeler loan, you must always discuss about the prevailing interest rates with your banker and check your affordability. Since the interest rates can make or break your loan deal, always pay attention to the finer details about the rate of interest.
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Also Read: Two Wheeler Insurance.
Features and Benefits of Two Wheeler Loans:
With most of the banks offering loans up to 90% of the on-road price of the vehicle, you can purchase any brand new two-wheeler without any second thoughts.
Burning up all your savings to purchase a two-wheeler is a risky option. Instead, avail a two-wheeler loan to relieve you of the financial burden. As an added advantage, you can also plan your budget effectively and pay back the loan in affordable EMIs.
Two-wheeler loans usually cover the cost of insurance, accessories and registration.
To get more out of your two-wheeler loan, check for loan partnership options with your automobile dealer.
Two-wheeler loan requires minimal documentation and is offered for all sections of people and all class of customers.
The income criteria is also lenient and most of the banks offer motorbike loans for people with an annual income of Rs.50,000.
There is either no prepayment penalty or a nominal foreclosure charge for paying off the two-wheeler loan ahead of the tenure.
Most of the banks also offer flexible repayment options which will enable the customer to choose a comfortable tenure.
Two Wheeler Loan Interest Rates:
The interest rates for two-wheelers loans in India vary between 13% to 27% depending on the bank, type of vehicle, applicant's employment type and source of Income.
The interest rates are usually floating and is linked to the base rates. Because a two-wheeler is a depreciating asset, the interest rates are generally higher when compared to other loan products. Interest rates for two-wheeler loans may also depend on other factors like the tenure, margin and type of vehicle.
Current Two Wheeler Loan Interest Rates:
Given below are the current interest rates for two wheeler loans offered by Indian banks and financiers:
|Name of bank||Two wheeler Interest rate|
|SBI||MCLR + 3.00% = 12.10%|
|HDFC||Super Bike Two wheeler Loan||APR: 9.96% to 15.74%||IRR: 9.95% to 15.50%|
|Two wheeler Loan||11.37% to 33.15%||11.01% to 24.07%|
|Saurashtra Bank||Repayment Period upto 3 Years||15%|
|Repayment Period above 3 Years, upto 5 years||16%|
|Bank of Baroda||One year MCLR + Strategic Premium + 4.00%|
|Punjab National Bank (14.50 %)||In which monthly income is being paid via concerned branch and/ or under check off facility||< 3 years||MCLR+3.10%|
|equal to 3 years||MCLR+3.60%|
|For every other loan including Business concerns||< 3years||MCLR+4.10%|
|equal to 3 years||MCLR+4.60%|
|Power Ride||Upto 36 months||MCLR+1.60%|
|Andhra Bank||For loan term up to 36 months||MCLR + 1.80%|
|For loan terms more than 36 months||MCLR + 1.80% + 0.25%|
|Bajaj Fin Serv||Customers are segregated into three bands, namely,|
|Medium||27% to 30%|
|L & T Finance||Upto 23%; actual rate varies on fluctuations in market and credit worthiness of the borrower|
|UCO Bank||For General category - MCLR of 1 Year + 4.40%|
|Accounts with full liquid collateral security, 1.00% interest Rebate|
|Accounts with 50% liquid collateral security, 0.50% interest Rebate|
|Vijaya Bank||MCLR 1 Year + 2.20% =11.65% p.a. (floating)|
|Oriental Bank of Commerce||Upto 36 months||BR + 0.50% = 10.20%|
|Upto 84 months||BR + 0.75% = 10.45%|
|Shriram City Union Finance||At the lender's discretion on the basis of schemes opted by the borrower|
|Bank of India||For a new vehicle, for all tenures within the repayment period of the scheme||BSS (0.10%) above 1 Year MCLR (Presently 9.50 %)|
|Punjab & Sind Bank||New Vehicles Two Wheeler||One Year MCLR (9.60%)+ 2.00% = 11.60% One year MCLR+3.10% (PER: 13.40% p.a.)|
|Lakshmi Vilas Bank|
|Nainital Bank||Base rate + 0.25% (Floating)|
|City Union Bank||Base rate||Base rate + 7% = 17.50%|
|BPLR||PLR + 1% = 17.25%|
|State Bank of Mysore||Upto 5 years||MCLR + 6.55% = 16.05%|
|State Bank of Travancore||Rs.50000 and below||13.85%|
|State Bank of Patiala||Floating Rate of Interest||15.75% p.a. i.e. 6.25% above MCLR|
|Fixed Rate of Interest||16.00% p.a. i.e. 6.50% above MCLR|
|Central Bank of India||Floating||MCLR + 0.40%|
|Fixed Rate ( Repayment within 36 months)||MCLR + 0.40%|
Eligibility and Documentation for Two Wheeler Loans:
In India, most of the banks offer two-wheeler loans for people in the age group of 18 to 65. The applicant can be a student, a salaried profession or a self-employed customer. Select banks also offer specialized two-wheeler loan products for agriculturists. The income criteria for two-wheeler loans depend on the type of loan and is at the discretion of bank.
Documents - The applicants have to submit an ID proof and a proof of address. Income documents like bank account statements, salary slips, income tax return statements and certificate of employment is also required. Agriculturists and self-employed people have to submit relevant supporting documents to avail a loan for two-wheeler.
How to Compare Two Wheeler Interest Rates?
Before deciding on a two-wheeler loan product, carefully analyze about all the features that it has to offer.
Check if the interest rates for two-wheeler loan with regards to a particular bank is floating or fixed. Also, use a two-wheeler loan EMI calculator to decide your loan affordability.
In a two-wheeler loan EMI calculator, all you have to enter is the loan amount, tenure and the interest rates. The calculator will project the monthly EMI along with the repayment schedule which will help you decide if the loan on that interest rate is affordable.
Compare different two-wheeler loan products and check if features like nil-foreclosure charges, insurance and high quantum is offered. Also, make sure you compare the interest rates for two-wheeler loans using a third-party comparison website.
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News about Two Wheeler Loan
Maratha community will receive interest-free loans
The government of Maharashtra has created formal tailor-made loan deals for the Maratha community by introducing personal loans as well as group loans. For these loans, the state government will be responsible for the interest payment. The Annasaheb Patil Finance Development Corporation (APFDC) will be disbursing interest-free loans out of which around Rs.1,200 crore will be provided to the APFDC.
The director of APFDC, Sucheta Bhikane, said that these interest-free loans will be offered under three segments. Under the first category, personal loan amounts between Rs.1 lakh and Rs.10 lakh will be disbursed at an interest rate of 12%. The second category will include personal loan amounts ranging from Rs.10 lakh and Rs.50 lakh at an interest rate of 12%. The third category consists of loans that will be offered by the APFDC directly to farmer producer organisations.
20th November 2017
Avantura releases 2 bikes with prices of up to Rs.23.90 lakh
Avantura Choppers, leading custom motorcycle manufacturer, recently introduced its first 2 bike models namely Pravega and Rudra. The prices of these 2 models are Rs.21.40 lakh and Rs.23.90 lakh respectively. These 2 models are chopper-style models and they come with a 2000cc engine.
The pre-bookings for these models will begin from the India Bike Week 2017, which will be held on 24th and 25th of November in the state of Goa.
These 2 fancy models have been created for enabling users to enjoy an authentic chopper experience. Indian riders will be able to use any of these 2 models in the appropriate riding conditions prevailing in the country.
16th November 2017
Benelli to release Imperiale 400 in India
Benelli, leading Italian motorcycle manufacturer, recently released its brand new cruiser motorcycle, which is retro-styled, at the 2017 EICMA Motorcycle Show in Milan, Italy. The bike is called Imperiale 400.
The bike manufacturer intends to launch its new vehicle model in India. It will be launched in the nation under the 300cc to 400cc section. It is scheduled to be released in the nation during the third quarter of 2018. This bike model will most likely be a competitor to the 350cc Royal Enfield.
The bike has a headlamp with a classic round shape, spoke wheels, rear fenders, and a chrome-finished engine.
14th November 2017
Concept of Hero MotoCorp XPulse Adventure Bike Launched at EICMA 2017
At the EICMA Motorcycle Show that is currently going on, Hero MotorCorp released its concept of the brand new Hero XPulse adventure motorcycle. The leading bike manufacturer stated that this new concept of the bike will promote the impulse legacy of the company. It also denotes and elucidates the company’s goals to enter other energy engine capacity categories.
Pawan Munjal, the Chairman, Managing Director and CEO of Hero MotoCorp, mentioned that the company aims to create and enhance many new concepts for newer bikes. The company will also incorporate plans to meet international standards and preferences of customers.
8th November 2017
Royal Enfield releases Parallel Twin engine with 650cc
Royal Enfield has released an amazing engine which is scheduled to reach their flagships by April 2018. The leading bike manufacturer has launched a brand new powerful engine with 650cc. It is a twin parallel engine that will help the company’s future bikes function efficiently. The company will release 2 new bikes at the Milan Motorcycle Show in a few days.
Royal Enfield intends to release 2 types of bikes with variant styles. One of the styles is similar to a café-racer design and the other style will be a street-style handle bar which is slightly raised.
7th November 2017
Avantura is launching chopper bikes first time in India
Avantura has decided to introduce chopper bikes in India for the first time. It is the first initiative of an Indian company to launch such modified motorcycles in India, a trend which first started in California during 1950s.
Co-founded by two motorcycle enthusiasts, Vijay Singh and Gaurav A Aggarwal, Avantura Choppers, has already entered into contracts with Mustang, Kellermann and S&S, the global original equipment manufacturers. These fancy bikes powered with 2,000-CC engines are expected to come at a starting price of more than 20 lakhs. With this price tag, Avantura Choppers will become one of the costliest motorcycles after Harley-Davidson, Triumph and Indian.
Though the market of high-power bikes in India is at a very early stage, the sale of 1600-CC bikes has significantly increased in the recent times with reportedly 60% hike every year. According to the industry experts, by 2022 around 20,000 high-performance motorbikes will hit the Indian roads out of which Avantura is hoping to grab at least 5% to 8% of the sales share.
2nd November 2017
Bookings opened for Honda Grazia from 25 October
The bookings for Honda’s new automatic scooter, Grazia, has been opened from Wednesday, 25 October. Though the scooter isn’t launched in the market yet, Honda two-wheeler dealerships have started taking the registrations. Honda Grazia can be booked at any HMSI dealership across the country by paying a token amount of Rs.2000.
Currently, Honda Motorcycle & Scooter India is selling six popular scooters in India and Grazia is the next big addition to its exclusive product line. This advanced urban scooter is meant for the city riders unlikely its latest launch Cliq which is specifically designed for the rural riders. Since Grazia is specially designed for the vibrant and confident urban youth, it is expected to have innovative features and sharp designs.
As per the images, Grazia is likely to feature a dual-tone colour scheme with complimentary sharp lines running along the body. Black-alloyed wheels with tubeless tyres, Combi Brake System (CBS), twin-telescopic front suspension, and USB mobile charging port are some of its expected features. Probably, Grazia will be powered by a 125cc engine with Eco technology for better fuel economy. Coming to price, it is expected to range between Rs.50,000 to Rs.65,000.
31st October 2017
HMSI releases its first teaser of Honda Grazia
Honda Motorcycle and Scooter India (HMSI) has shared its first official teaser of all the new Honda Grazia scooter. The release is scheduled in the nearing date but the leaked images of the new range has gone viral all over the internet. The bookings have opened from today for the new scooter all over the country.
The new Honda Grazia is a 125cc single cylinder scooter with 8.52 bhp at 5600 rpm and 10.54 Nm torque. From the initial images of the scooter, it has a featured disc brake with Combi-Braking System, dual headlamps, alloy wheels with sharp edgy looks. We hope that the official list of features on the model is released soon.
27th October 2017
Honda goes ahead of Bajaj to become no.2 in local bike sales
Honda Motorcycle and Scooter India (HMSI) has gone ahead of Bajaj Auto to reach the 2nd largest position in bike sales in the nation during the 1st half of the present fiscal year. Between April and September, the company made sales of 10.48 lakh motorcycles in the domestic market with a growth of 19.8%. Last fiscal, HMSI had sold 8.74 lakh units as opposed to Bajaj Auto that sold 11.28 lakh units.
However, HMSI did not become number 1 or 2 in the scooter section. It lost to TVS Motor Co., the Chennai-based two-wheeler manufacturer.
25th October 2017
Benelli to release new 400cc, 250cc and 750cc two-cylinder bikes at 2017 EICMA
Benelli is coming up with 10 new models of bikes in the 2017 EICMA Motorcycle Show to be held in Milan. Following its trend of revealing new bikes every year, this Italian bike maker is all set to showcase a new 400cc model along with the 250cc and 750cc versions of TRK adventure tourer. While Benelli is expecting to blow the quarter-litre adventure tourer segment with the 250cc version of TRK, the 750cc version is assumed to take over the high-power bike segment. The company has confirmed that the new 400cc models of bikes will come with twin-cylinder engines.
Shirish Kulkarni, the India Boss of DSK Benelli, had revealed about the launch of a new 400cc bike especially for the Indian market in the starting of the current year. Holding on to that, the expectations are high that the new 400cc Benelli bike to be showcased in EICMA is the model that will make its way to India soon.
23rd October 2017